PSA Peugeot Citroen may announce as soon as this week plans to sell a stake of about 7 percent in the French carmaker to General Motors Co. as part of a development alliance, people familiar with the matter said.
The deal would involve a standstill agreement by which GM would not take a greater holding in the Paris-based carmaker without permission, said the people, who asked not to be identified because the talks are private. Peugeot may offer additional shares through a rights issue as part of the transaction, the people said.
The French financial daily, Les Echos, cited unnamed sources saying that GM might initially take a stake of under 5 percent in PSA Peugeot Citroen, but said a deal hadn't yet been concluded.
Read Article